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American Crystal Sugar Company

From Alfawiki
American Crystal Sugar Company
Company typeAgricultural Marketing Cooperative
IndustryAgriculture
Founded1899; 127 years ago (1899)
FounderHenry T. Oxnard
Headquarters,
Area served
Minnesota & North Dakota
Key people
Thomas Astrup (President & CEO)
ProductsSugar
ParentUnited Sugars, Midwest Agri-Commodities
Websitewww.crystalsugar.com

American Crystal Sugar Company operates as a cooperative in the agricultural sector with a focus on sugar manufacturing. With ownership distributed among nearly 2,800 stakeholders, it manages approximately one-third of the U.S. sugarbeet cultivation within the Red River valley spanning Minnesota and North Dakota. Recognized as the nation's largest producer of beet sugar, the company leverages advanced agricultural techniques, efficient production processes, and robust sales strategies to provide around 15% of the country’s sugar supply. Its production facilities are located in Crookston, Minnesota, East Grand Forks, Minnesota, Moorhead, Minnesota, as well as Drayton, North Dakota and Hillsboro, North Dakota. The corporate headquarters and technical services center are based in Moorhead.

Marketing efforts for American Crystal’s sugar products to both retail and industrial markets across the United States are managed by United Sugars Producers & Refiners Cooperative, headquartered in Edina, Minnesota. Meanwhile, Midwest Agri-Commodities Company, situated in San Rafael, California, oversees international marketing for byproducts such as sugarbeet pulp, molasses, concentrated separated byproduct (CSB), and betaine.

History

Established in 1899 by Henry Oxnard, American Crystal Sugar originated as the American Beet Sugar Company through the consolidation of four sugar beet processing plants that Oxnard had founded during the 1890s. These included operations in Grand Island and Norfolk, Nebraska; Chino, California; and Oxnard, California. By 1901, the company expanded further by adding a facility in Rocky Ford, Colorado.

The company adopted the name American Crystal Sugar in 1934. In 1973, ownership shifted from public shareholders to a cooperative structure controlled by the Red River Valley Sugarbeet Growers Association following a $50 million acquisition.

From 1917 until its closure in 1973 due to environmental regulations and financial difficulties related to newer plants and decreasing acreage, American Crystal ran a beet sugar factory located in Mason City, Iowa.

Company imposed lockout

In August 2011, a proposed wage agreement offering a total increase of 13% over five years (equivalent to 2.5% annually) was rejected by 96% of American Crystal Sugar employees. This proposal required employees to accept higher health insurance costs and diminished seniority privileges. Following five separate votes over a span of twenty months, members of Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union Local 167G approved a contract similar to previous offers with a narrow majority of 55%. During the lockout period, approximately 650 workers departed from the company; about 400 of these employees returned after the contract was ratified.

Political contributions and involvement

American Crystal Sugar Company was identified as the third-largest corporate contributor supporting Republican legislators who opposed the certification of the 2020 presidential election outcomes, a stance associated with the events of January 6, 2021. The two leading donors in this category were Koch Industries and Valero Energy.

Further reading

External links